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The Economic Impact of LGBT Exclusion M. V. Lee Badgett University of Massachusetts Amherst Williams Institute, UCLA August 2015

The Economic Cost of Homophobia

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Being more LGBT friendly actually increases a country's economic growth, a 2011 study shows.A professor from the University of Massachusetts said countries which are more inclusive to the lesbian, gay, bisexual and transgender (LGBT) community enjoy higher economic growth and human development.Speaking in the forum "The Cost of Exclusion: A Congressional forum on the impact of discrimination against LGBTs on poverty and development" at the House of Representatives on Monday, Dr. Lee Badgett said there is a positive relationship between gender rights and economic development.

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Page 1: The Economic Cost of Homophobia

The Economic Impact of LGBT Exclusion

M. V. Lee BadgettUniversity of Massachusetts Amherst

Williams Institute, UCLA

August 2015

Page 2: The Economic Cost of Homophobia

Source: Pew Research Global Attitudes Project

Should Society Accept Homosexuality?

Page 3: The Economic Cost of Homophobia

Source: Pew Research Global Attitudes Project

Should Society Accept Homosexuality?

14

33

11

11

16

22

18

18

40

46

74

47

80

78

93

95

97

94

18

26

36

59

57

86

93

87

21

24

30

36

42

49

62

61

90

96

96

96

98

80

60

88

87

80

77

76

74

53

42

16

40

18

9

4

3

3

2

79

73

54

39

21

9

3

2

74

68

61

60

51

43

34

32

8

4

3

3

1

Canada

U.S.

Spain

Germany

Czech Rep.

France

Britain

Italy

Greece

Poland

Russia

Israel

Lebanon

Turkey

Palest. ter.

Egypt

Jordan

Tunisia

Australia

Philippines

Japan

S. Korea

China

Malaysia

Indonesia

Pakistan

Argentina

Chile

Mexico

Brazil

Venezuela

Bolivia

El Salvador

S. Africa

Kenya

Uganda

Ghana

Senegal

Nigeria

YesNo

The Global Divide on Homosexuality Greater Acceptance in More Secular

and Affluent Countries

As the United States and other countries

grapple with the issue of same-sex marriage, a

new Pew Research Center survey finds huge

variance by region on the broader question of

whether homosexuality should be accepted or

rejected by society.

The survey of publics in 39 countries finds

broad acceptance of homosexuality in North

America, the European Union, and much of

Latin America, but equally widespread

rejection in predominantly Muslim nations

and in Africa, as well as in parts of Asia and in

Russia. Opinion about the acceptability of

homosexuality is divided in Israel, Poland and

Bolivia.

Attitudes about homosexuality have been fairly

stable in recent years, except in South Korea,

the United States and Canada, where the

percentage saying homosexuality should be

accepted by society has grown by at least ten

percentage points since 2007. These are

among the key findings of a new survey by the

Pew Research Center conducted in 39

countries among 37,653 respondents from

March 2 to May 1, 2013.1

The survey also finds that acceptance of

homosexuality is particularly widespread in

countries where religion is less central in

1 Results for India are not reported due to concerns about the survey’s administration in the field.

Should Society Accept Homosexuality?

PEW RESEARCH CENTER Q27.

Latin America

Africa

Asia/Pacific

Middle East

Europe

N. America

14

33

11

11

16

22

18

18

40

46

74

47

80

78

93

95

97

94

18

26

36

59

57

86

93

87

21

24

30

36

42

49

62

61

90

96

96

96

98

80

60

88

87

80

77

76

74

53

42

16

40

18

9

4

3

3

2

79

73

54

39

21

9

3

2

74

68

61

60

51

43

34

32

8

4

3

3

1

Canada

U.S.

Spain

Germany

Czech Rep.

France

Britain

Italy

Greece

Poland

Russia

Israel

Lebanon

Turkey

Palest. ter.

Egypt

Jordan

Tunisia

Australia

Philippines

Japan

S. Korea

China

Malaysia

Indonesia

Pakistan

Argentina

Chile

Mexico

Brazil

Venezuela

Bolivia

El Salvador

S. Africa

Kenya

Uganda

Ghana

Senegal

Nigeria

YesNo

The Global Divide on Homosexuality Greater Acceptance in More Secular

and Affluent Countries

As the United States and other countries

grapple with the issue of same-sex marriage, a

new Pew Research Center survey finds huge

variance by region on the broader question of

whether homosexuality should be accepted or

rejected by society.

The survey of publics in 39 countries finds

broad acceptance of homosexuality in North

America, the European Union, and much of

Latin America, but equally widespread

rejection in predominantly Muslim nations

and in Africa, as well as in parts of Asia and in

Russia. Opinion about the acceptability of

homosexuality is divided in Israel, Poland and

Bolivia.

Attitudes about homosexuality have been fairly

stable in recent years, except in South Korea,

the United States and Canada, where the

percentage saying homosexuality should be

accepted by society has grown by at least ten

percentage points since 2007. These are

among the key findings of a new survey by the

Pew Research Center conducted in 39

countries among 37,653 respondents from

March 2 to May 1, 2013.1

The survey also finds that acceptance of

homosexuality is particularly widespread in

countries where religion is less central in

1 Results for India are not reported due to concerns about the survey’s administration in the field.

Should Society Accept Homosexuality?

PEW RESEARCH CENTER Q27.

Latin America

Africa

Asia/Pacific

Middle East

Europe

N. America

Relatively accepting of homosexuality

Page 4: The Economic Cost of Homophobia

Philippines: Tolerant of neighbors% would not want homosexual neighbor

0

10

20

30

40

50

60

70

80

2005-2009 2010-2014

Philippines

China

Taiwan

Malaysia

Singapore

Thailand

World Values Survey

Page 5: The Economic Cost of Homophobia

65%

37%

25%

23%

9%

35%

Philippines

US

Unacceptable Acceptable Not moral issue

Source: Pew Research Center Global Views on Morality

But most believe homosexuality is morally unacceptable

Page 6: The Economic Cost of Homophobia

Cross-national

Country

Employer

Person

Page 7: The Economic Cost of Homophobia

HOMOPHOBIA

Violence

Prison

Job loss

Discrimination

Family rejection

Harassment in school

Pressure to marry

Lower productivity

Lower earnings,

more poverty

Poorer health, shorter lives

Less education

Higher health care & social program

costs

Economy-level outcomes

Lower economic

output

Fewer incentives to invest in human

capital

Lower labor force participation

Individual-level outcomesSocial Exclusion

Page 8: The Economic Cost of Homophobia

HOMOPHOBIA

Violence

Prison

Job loss

Discrimination

Family rejection

Harassment in school

Pressure to marry

Lower productivity

Lower earnings,

more poverty

Poorer health, shorter lives

Less education

Higher health care & social program

costs

Economy-level outcomes

Lower economic

output

Fewer incentives to invest in human

capital

Lower labor force participation

Individual-level outcomesSocial Exclusion

Page 9: The Economic Cost of Homophobia

Cross-national

Country

Employer

Person

Page 10: The Economic Cost of Homophobia

Hewlett-Packard

Aetna

MicrosoftBarnes & Noble

Nike Viacom

Facebook

Morgan Stanley

Google

Apple

“[Discriminatory laws] can impede business efforts to

recruit, hire, and retain the best workers in an environment that

enables them to perform at their best.”

Clorox

McGraw Hill

Xerox

Verizon

Office Depot

Intel

Page 11: The Economic Cost of Homophobia

LGBT-supportive policies and workplace climates generate economic benefits for employers

1

3

3

8

11

14

16

1

1

3

2

4

1

1

1

Increasedproductivity

Less discrimination

Improved workplacerelationships

More opennessabout being LGBT

Increased jobsatisfaction

Improved healthoutcomes

Greater jobcommitment

Positive business relationship

No business relationship

Negative business relationship

Page 12: The Economic Cost of Homophobia

Cross-national

Country

Employer

Person

Page 13: The Economic Cost of Homophobia

HOMOPHOBIA

Violence

Prison

Job loss

Discrimination

Family rejection

Harassment in school

Pressure to marry

Lower productivity

Lower earnings,

more poverty

Poorer health, shorter lives

Less education

Higher health care & social program

costs

Economy-level outcomes

Lower economic

output

Fewer incentives to invest in human

capital

Lower labor force participation

Individual-level outcomesSocial Exclusion

Page 14: The Economic Cost of Homophobia

World Bank Case Study: Cost of LGBT Exclusion in India

The model can estimate:

• Lost productivity caused by discrimination in workplace

• Impact of family constraints on decision-making about labor force participation

• Cost of health disparities: HIV, depression, suicide

Page 15: The Economic Cost of Homophobia

Cross-national

Country

Employer

Person

Page 16: The Economic Cost of Homophobia

Inclusion

Index of legal rights

(GILRHO)

?

Economic outcomes

GDP per capita,

Human DevIndex

Compare countries(USAID & Williams Inst. 2014)

Page 17: The Economic Cost of Homophobia

Positive correlation of rights with GDP per capita, 2011

Albania

Argentina

Bosnia & Herzegovina

Brazil

BulgariaChile

China Colombia

Czech Rep.

EcuadorEgypt

El Salvador

Estonia

GuatemalaHonduras

Hungary

IndiaIndonesia

Kenya

LatviaLithuania

MalaysiaMexico

Morocco

NepalPakistan

Peru

Philippines

Poland

Romania

Russia

Serbia

South Africa

Taiwan

Thailand

Turkey

Ukraine

Venezuela

0

5

10

15

20

25

30

0 1 2 3 4 5 6 7 8

GD

P p

er

cap

ita

(Th

ou

san

ds

USD

)

Global Index on Legal Recognition of Homosexual Orientation

Page 18: The Economic Cost of Homophobia

Transgender rights positively correlated with GDP per capita 2011

Argentina

Bosnia-Herzegovina

Brazil

Chile

Ecuador

Egypt

El Salvador

India

Kenya

Philippines

PolandRussia

Serbia

South Africa

Thailand

Turkey

Venezuela

-

2

4

6

8

10

12

14

16

18

20

0 2 4 6 8 10 12 14

GD

P p

er

cap

ita

(Th

ou

san

ds

USD

)

Transgender Rights Index

Page 19: The Economic Cost of Homophobia

Econometric findings

One additional right

+ $320 GDP per cap (3%)

Page 20: The Economic Cost of Homophobia

LGBT INCLUSION ECONOMIC DEVELOPMENT

Post-materialist demand for human

rights

Human capital & economic potential

Strategic modernization

Achievement of capabilities